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Progressive CA Calling on 18 Year Old Debt

Date: Thu, 02/04/2010 - 11:06

Submitted by Our Associate
on Thu, 02/04/2010 - 11:06

Posts: 4 Credits: [Donate]

Total Replies: 9


Greetings,

What should they do? What can they do?


Student loans have no statue of limitations and even if garnishment is not allowed in that state they can still do this.

Have the husband call the agency that issued the loan....they never sell them off and if it is a government loan he should be able to get details. They WILL work with you and he should try to make some kind of payment arrangement. Otherwise they will garnish and/or take the tax return. Happened to me.

Just work with them. Talk to the loan agency there is a possibility that they will simply write off the debt....they have programs and such for people who are in serious situations (sounds like your friend is)....but whatever he does, tell him NOT to ignore it!


lrhall41

Submitted by goldenbast on Thu, 02/04/2010 - 11:33

( Posts: 2884 | Credits: )


Quote:

Originally Posted by goldenbast
Student loans have no statue of limitations and even if garnishment is not allowed in that state they can still do this.

Have the husband call the agency that issued the loan....they never sell them off and if it is a government loan he should be able to get details. They WILL work with you and he should try to make some kind of payment arrangement. Otherwise they will garnish and/or take the tax return. Happened to me.

Just work with them. Talk to the loan agency there is a possibility that they will simply write off the debt....they have programs and such for people who are in serious situations (sounds like your friend is)....but whatever he does, tell him NOT to ignore it!


I will try to contact the original university as well as the D.O.E. to see if he can settle the debt with them. I hope we can still do this even if it was 'sold' to Progressive CA.

We want the debt to be settled at most for the original amount, and not with the huge amount of interest.


lrhall41

Submitted by Our Associate on Thu, 02/04/2010 - 12:06

( Posts: 4 | Credits: )


Quote:

Originally Posted by SOAPLADY
There are no programs available to write off debt that you are not in repaying on. I would suggest consolidating the loan thru Direct Loans and get on the income contingent repayment plan.


Can you provide contact information for consolidating the loan through Direct Loans? How do they compare to CareOne Credit Counseling?

I like the idea of a income contingent repayment plan since they have almost no money and are resorting to dumpster diving to get food quite often.


lrhall41

Submitted by Our Associate on Thu, 02/04/2010 - 12:08

( Posts: 4 | Credits: )


Quote:

Originally Posted by SOAPLADY
For starters, you cannot do credit counselling on defaulted student loans.

Google Direct Loans Consolidation. Or look at the stickies at the top of this forum.


Thank you! I was not aware of that. It appears if he is unable to come to an ICR-like arrangement with the university (IDK how) then he must come to an ICR-arrangement with loanconsolidation.ed.gov for optimal results.

This will reduce his payment lower then the %15 garnishment.


lrhall41

Submitted by Our Associate on Thu, 02/04/2010 - 13:40

( Posts: 4 | Credits: )